How it works

How Brilliant Diamond Exchange works

We do two things. We keep a provenance registry of important natural colored diamonds on the Hedera network, and we offer shares in the rarest of them, each with its own market. $BDE tokens are ownership in the company that runs both. Private offerings for accredited investors come first. Our public offering opens once the SEC qualifies it.

  1. Registry

    Each important stone gets a permanent record: its GIA report, laser inscription, history, custody and ownership, time-stamped on Hedera. About the registry

  2. Selection

    Our diamond specialist looks for natural colored stones that clear our bar: a GIA report confirming natural color, a Fancy Intense, Vivid or Deep grade, an appraisal of $1 million or more, and a documented story. $BDE holders can propose and vote on candidate stones. What qualifies

  3. Ownership

    Each stone has one token on Hedera, divided into shares. Owning shares means owning that fraction of the stone. Brilliant Diamond Exchange DAO LLC holds the stone for the token holders under a custody agreement. [Counsel to confirm how token holders' ownership is protected from the DAO's creditors]

  4. Storage and insurance

    The DAO stores each stone in a secure vault, insured against theft, loss and damage, with regular independent inspections. Custody details

  5. Valuation

    Each stone gets an independent appraisal, checked against recent auction results for comparable stones. The offering circular explains how the price was set.

  6. Offering

    Today: private offerings under Rule 506(c) to verified accredited investors. Next: a public offering under Regulation A, Tier 2, once the SEC qualifies it. How offerings work

  7. Trading

    Each stone will have its own market on a registered trading venue. Private-offering shares are restricted securities and generally can't be resold for six months to a year. About the markets

  8. Majority sale

    There's no fixed sale date. Anyone who comes to own more than 50% of a stone's shares can require every other holder to sell to them at the same price, under the price rule in the offering documents. Selling and majority sales

Fees

We charge a small fee each time shares are bought or sold, shown before you confirm a trade. We don't charge an issuance fee, an annual management fee or a share of your profit.

Storage, insurance and inspection costs are covered as each offering's documents describe. [Paid by the DAO from its revenue, or from a reserve set aside in each offering] The trading fee is 1% to 3% of each trade: close to 3% at launch, coming down to under 1% as trading volume grows. It's set out in full in each offering circular or private placement memorandum.

Earlier versions of this site described a liquidity pool that would provide a price floor. That design has been withdrawn. We may fund market-making support, with disclosed limits. It won't guarantee any price.